A Saudi-Chinese consortium comprising “China Energy Engineering Group Co. (CEEC),” “ACWA Power,” and “Saudi Aramco Power Company,” alongside the Public Investment Fund, is set to build a solar power plant in Saudi Arabia.
What
The consortium has signed a USD 972 million contract to develop a solar power plant, boasting a 2 GW capacity.
This is the latest deal in a series of agreements between China and the Kingdom in the renewable energy sector.
Construction is expected to take 31 months, according to a disclosure by the Chinese company to the Shanghai Stock Exchange.
So what
Last month, China’s TCL Zhonghuan Renewable Energy Technology agreed with Saudi entities, including the Saudi sovereign fund, on a USD 2.08 billion project for the manufacturing of silicon wafers and crystals.
Additionally, “JinkoSolar” signed a separate agreement to invest in a 10 gigawatt solar cell and panel manufacturing plant in Saudi Arabia, with an investment of USD 985 million.
Some context
The Kingdom aims to issue annual tenders for new renewable energy projects with a collective capacity of 20 GW.
The goal is to reach between 100 and 130 GW by 2030, depending on the growth of electricity demand.
Since the beginning of this year, six new renewable energy projects have been tendered, with a total capacity of 6.7 GW.
Additional capacities are planned for the current year to meet the annual tender target of 20 GW.
The National Renewable Energy Program aims to achieve an “optimal energy mix” for electricity production.
This involves replacing liquid fuels used in electricity production with gas and renewable energy sources, which are expected to constitute nearly 50% of the electricity generation mix by 2030.
Now what
ACWA Power (2082), the world’s largest private water desalination company, announced the signing of a power purchase agreement for the “Saguling” floating photovoltaic solar power project in Indonesia.
This agreement is with “PT Perusahaan Listrik Negara (PLN), Indonesia’s sole state-owned electricity company.
The project’s production capacity is 60 megawatts, and it is the “first floating photovoltaic solar project” that ACWA Power is developing.
The ownership is divided, with ACWA Power holding 49%, while the remaining stake is owned by “Indonesia Power,” a subsidiary of PLN.
The “Saguling” project is part of the Saudi company’s plan to expand into the Asian state through strategic investments.
It is also developing the “Garuda Hidrogen Hijau” project, Indonesia’s largest green hydrogen facility, in collaboration with PLN.
